Global oilfield drill bits market was valued at US$ 5.60 Billion in 2016, according to Global Oilfield Drill Bits Market Report by Drill Bit Type (Roller Cone Bits and Fixed Cutter Bits), by Application (Onshore and Offshore), published by Coherent Market Insights. The oilfield drill bits market is expected to register a CAGR of 6.1% over the forecast period (2017-2025) to reach US$ 9.49 billion by 2025. Drill bits play a major role in E&P activities as they are used in the drilling of boreholes. The type of drill bit chosen depends on the formation.

The major factors propelling the growth of this market include increasing demand for crude oil and natural gas from countries globally. With the recovery of the oil and gas industry after the slump in oil prices in 2014, demand for drill bits is expected to increase due to E&P projects being undertaken

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Based on the drill bit type, the roller cone bits segment dominated the global oilfield drill bits market in 2016 and is expected to lead the market throughout the forecast period. The use of fixed cutter bits, such as PDC bits and diamond bits are experiencing an increase in demand in the market due their higher strength and durability. The strength and durability of fixed cutter bits is due to the use of diamond for the production of these bits. Diamond has a hardness of 10 on the Mohrs’ scale. Hence, these bits are preferred in hard and abrasive formations. However, the use of diamond for the manufacturing of these drill bits considerably increases the manufacturing costs

Key Takeaways of the Market:

North America dominated the global oilfield drill bits market and was valued at US$ 1.69 billion in 2016. The region is projected to witness a CAGR of 6.4% in terms of revenue during the forecast period (2017-2025). The dominance is majorly attributed to the rising E&P shale projects being undertaken in the U.S. The IEA has predicted a 53% increase in investments in shale activity in the U.S. in even though oil prices are hovering around the US$ 50/bbl price mark. The U.S. shale producers are benefiting from the OPEC’s decision to lower their production thus leaving tremendous potential for the growth of shale gas producers in the U.S.

The Middle East is projected to be the second largest region in terms of revenue in the global oilfield drill bits market in 2016. The Middle East oilfield drill bits market was valued at US$ 1.32 billion in 2016 and is expected to reach US$ 2.18 billion by 2025 growing at a CAGR of 5.8% during the forecast period. The recovering crude oil prices has seen a surge in E&P projects being undertaken in the Middle East. The Leviathan field located, 130 kms off Israel has substantial reserves of 1.7 billion barrels of oil alongside 3.4 trillion cubic meters of natural gas. Noble Energy is expected to start production in this field by 2019. Projects such as these are expected to boost the demand for oilfield drill bits in the Middle East region during the forecast period.